In today forex faq, we have a question from one of our fellow traders regarding support and resistance level.
Below is the question:
Which one is better, fibo for support and resistance or I draw the lines by myself, and what’s your trading style? Do you know any indicator moves the stop loss to break even automatically.
First of all, I believe that you are actually trying to compare support and resistance lines that you draw from previous swing highs and lows versus the support and resistance created by Fibonacci indicator.
Personally, both of them are equally important for my trading. However I will categorized the support and resistance from swing highs and lows into different level of importance.
For those that are drawn from swings that are deeper, I will consider them as strong level of support or resistance. For those that are drawn from swings that are very shallow, I usually ignored them in my trading as they do not really affects the movement of the market.
As for the Fibonacci levels, I will only consider the retracement level 0.382, 0.500 and 0.618 as important level of support and resistance.
My personal advice to you is to look out for support and resistance created by both the swings as well as the Fibonacci indicator as these are levels that will really affects the market movement.
As for your question on my trading style, I can tell you that I am a day trader who enter and exit my position within the same day. However I do also trade the scalping strategy as well. In fact, all my trading strategies are available in my forex street uni course as well as break the bands strategy.
As for your question on indicator that can shift the stop loss to break even automatically, I have no idea of any as I usually do it manually myself.
I hope that I have answered your question and do feel free to give your comment below.